Which property type is considered uninsurable under FAIR?

• A. Vacant or open to trespass.
• B. A property in good physical condition with a modern fire protection system.
• C. A well-maintained building with no code violations.
• D. A single-family home in a compliant HOA.

Answer: (A)

Understand that FAIR plans are designed to provide property insurance for risks that private markets won’t cover because of elevated danger. A property that’s vacant or open to trespass introduces a much higher likelihood of problems like arson, vandalism, undetected damage, and accelerated wear since there’s little or no on-site supervision or maintenance. That combination raises expected losses and makes underwriting far more challenging, so under typical FAIR underwriting standards this scenario is viewed as uninsurable. By contrast, a property in good physical condition with modern fire protection, no code violations, and a well-maintained home in a compliant HOA represents lower risk and fits the kind of property that can be insured, including through FAIR if needed.